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Home My WebLink AboutCity of Bozeman Ethics Handbook Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Aimee Kissel, Deputy City Clerk Greg Sullivan, City Attorney APPROVED BY: Chris Kukulski, City Manager SUBJECT: Ethics Handbook submitted by the City of Bozeman Board of Ethics for possible approval and promulgation. MEETING DATE: July 12, 2010 AGENDA ITEM TYPE: Action RECOMMENDATION: Approve the newly drafted City of Bozeman Ethics Handbook as presented and recommended by the Board of Ethics and direct staff to disseminate the handbook to all City officers and employees including citizen advisory board members and to make the handbook available to the public. BACKGROUND: The Bozeman Code of Ethics (Chpt. 2.01, BMC) as stated in Ordinance No. 1759 requires the City Board of Ethics to develop an “Ethics Handbook” within one year of the Board commencing operations: (13) within one year from the date of the first meeting of the board, submit to the governing body for its approval and promulgation, an ethics handbook for the use of all public servants and the public; the personnel department shall document that each City officer and employee receives a copy of the handbook and acknowledges receipt of the handbook in writing… 2.01.130, BMC. Board of Ethics members Melissa Frost, Stephen Schultz and Rodger McCormick have been meeting since July 22, 2009. Legal counsel has been provided at the board meetings by City Attorney Greg Sullivan, with Deputy City Clerk Aimee Kissel assisting as staff liaison and board secretary. After reviewing and recommending changes to Ordinance No. 1759 and reviewing and revising a financial disclosure statement form, the board began working on an Ethics Handbook. On December 14, 2009, the City Commission approved a professional services agreement with Paul Lachapelle at the Montana State University Extension Office for assistance in drafting the handbook. Mr. Lachapelle has been working closely with Ms. Kissel, Mr. Sullivan and the board to draft the handbook to be easy to understand yet comprehensive. 131 Once the draft was completed, the Board of Ethics provided an electronic copy of the draft handbook and a comment review form to approximately twenty-five City directors, staff, and citizen advisory board members, requesting input. In addition, Mr. Lachapelle asked for peer reviews from three colleagues. Approximately ten people provided feedback which was then reviewed by the Board with revisions made as appropriate. The draft was then formatted by Montana State University Printing Services and approved on June 3, 2010, by the Board of Ethics for recommendation to the City Commission. If the City Commission approves this draft of the ethics handbook, an appropriate number will be ordered from MSU Printing Services for dissemination to all City employees, citizen advisory board members and interested citizen with a PDF version available on the City website. Once the newly updated Bozeman Municipal Code is online, the handbook will also be made available online with direct hyperlinks to relevant code and State Statute. The handbook will become a part of the new hire packet and employees will sign off that it has been received. Advisory board members will be provided the handbook upon appointment. Members of the Board of Ethics will be present on Monday evening to answer any questions you may have. UNRESOLVED ISSUES: None. ALTERNATIVES: Approve the handbook with revisions. Direct the Board of Ethics to make substantive changes and if soextending the handbook completion deadline. FISCAL EFFECTS: The cost of printing and disseminating the handbooks has yet to be determined, but will come from the City Manager’s budget allocation for the Board of Ethics. Attachments: Ethics Handbook Draft Ethics Handbook Draft Comment Form Report compiled on: July 2, 2010 132 City of Bozeman Ethics Handbook Draft Comment Form Dear City Employee; The attached ethics handbook is currently being produced by the City of Bozeman Board of Ethics to educate citizens and train employees and public officials in best practices and legal requirements. In addition, the Handbook details specific ethical requirements and provides guidance on obtaining information and filing complaints. The Board of Ethics would like to ensure that this handbook is easy to understand, formatted in a way that is helpful and has information needed by a citizen, employee or public official with questions regarding ethics in local government. To that end, please take a few minutes to review the attached handbook and provide specific comments or feedback on this form that you feel may be helpful in accomplishing this goal. Please fill out this form and email it to Aimee Kissel in the City Clerk’s office by noon on Thursday, May 20th. Thank you so much for your time and effort on this project! Name of reviewer: _________________________________________________________ Department: ______________________________________________________________ Comment regarding page #________ in section ________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ Comment regarding page #________ in section ________________ 133 ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ Comment regarding page #________ in section ________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ Comment regarding page #________ in section ________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ Comment regarding page #________ in section ________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ Comment regarding page #________ in section ________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ Comment regarding page #________ in section ________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ Comment regarding page #________ in section ________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ Comment regarding page #________ in section ________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ Comment regarding page #________ in section ________________ 134 in collaboraƟ on with LOCAL GOVERNMENT CENTERCity of BozemanEthics HandbookApproved by the Board of Ethics on June 3, 2010Approved by the City Commission onin collaboraƟ on with LOCAL GOVERNMENT CENTER135 14City of BozemanBozeman City AƩ orney’s Offi ceBozeman City Hall121 North Rouse Ave.P.O. Box 1230Bozeman, MT 59771-1230Tel: (406) 582-2309City of Bozeman Human Resource DepartmentBozeman City Hall121 North Rouse Ave.P.O. Box 1230Bozeman, MT 59771-1230Tel: (406) 582-230018. How Can an Ethics Complaint Be Filed? Any member of the public may ﬁ le a complaint with the Board of Ethics or may request an ethics opinion from the Board (2.01.150.A). WriƩ en complaints shall be ﬁ led with the City Clerk at the address below. City of Bozeman Board of Ethicsc/o Offi ce of the City Clerk121 North RouseP.O. Box 1230Bozeman, MT 59771-1230Tel: (406) 582-2320agenda@bozeman.net www.bozeman.net/bozeman/Residents/EthicsCity of Bozeman Ethics Handbook byPaul R. LachapelleMontana State University ExtensionLocal Government CenterIn collaboraƟ on with:Bozeman City CommissionBozeman Board of EthicsBozeman City AƩ orney’s Offi ceBozeman City Clerk’s Offi ceMontana State University ExtensionCity of BozemanP.O. Box 1230 121 North Rouse Bozeman, MT 59771www.bozeman.netCopyright © 2010137 iiCity of BozemanPrefaceThis ethics handbook is produced by the city of Bozeman Board of Ethics to educate ciƟ zens and train employees and public offi cials in best pracƟ ces and legal requirements. In addiƟ on, this handbook details speciﬁ c ethical requirements and provides guidance on obtaining informaƟ on and ﬁ ling complaints. The City Code of Ethics provides legal requirements outlining conduct and best pracƟ ces as detailed in Chapter 2.01 of the Bozeman Municipal Code.City of Bozeman’s Core ValuesIntegrity:Be honest, hardworking, reliable, and accountable to the public.Leadership:Take iniƟ aƟ ve, lead by example, and be open to innovaƟ ve ideas.Service:Work unselﬁ shly for our community and its ciƟ zens.Teamwork:Respect others, welcome ciƟ zen involvement, and work together to achieve the best result.Disclaimer: This handbook is not meant to serve as an authoritaƟ ve legal guide for municipal and state ethics laws. For speciﬁ c legal direcƟ on regarding the city of Bozeman Code of Ethics and the Montana Code of Ethics, see the full state statutes, the complete city municipal code provisions, and consult with proper legal counsel. 13Ethics HandbookLocal Government CenterMontana State UniversityP.O. Box 172240Bozeman, MT 59717Tel: (406) 994-6694msulocalgov@montana.edu www.msulocalgov.orgEthics Resource Center2345 Crystal Drive, Suite 201Arlington, VA 22202Tel: (703) 647-2185 ethics@ethics.orgwww.ethics.orgCity Ethics, Inc.4417 Beach Blvd Suite 300Jacksonville, FL 32207info@cityethics.orgwww.cityethics.orgCouncil on Governmental Ethics LawsP.O. Box 81237Athens, GA 30608Tel: (706) 548-7758 director@cogel.orgwww.cogel.org17. What Is the Process to Seek Advice About the City Code of Ethics?If a city employee or offi cial has a quesƟ on about a potenƟ al ethics issue, impropriety, or violaƟ on, depending on the employee’s or offi cial’s posiƟ on and the nature of the issue, he/she should consult with his/her supervisor, Human Resources Department, or seek the advice of the City AƩ orney. Any member of the public may also request a formal or informal City AƩ orney opinion with respect to the ethical conduct of an employee or offi cial (2.01.170). In some circumstances, the City AƩ orney may exercise discreƟ on regarding whether to issue such an opinion. Contact informaƟ on is available below. 138 12City of Bozemanresults in compensaƟ on or privilege) within certain degrees of relaƟ onship. While state law related to nepoƟ sm applies only to these relaƟ onships, the appearance of favoriƟ sm with regards to friends or acquaintances of employees or offi cials can also be a hindrance to the public’s trust in city government. Employees and offi cials are encouraged to consult with the City AƩ orney for addiƟ onal informaƟ on on potenƟ al conﬂ icts or excepƟ ons to Montana state law requirements. 15. What Are the Penalties for Violating the Code of Ethics?The rules of the State and City Codes of Ethics are meaningless unless they can be enforced in a way that ensures the public trusts city offi cials and employees to serve city government. All employees and offi cials must understand that a violaƟ on of the City or State Code of Ethics could lead to disciplinary acƟ on including terminaƟ on, removal from offi ce, or even criminal sancƟ ons. While there are provisions in state code for violaƟ ons of state law (2-2-144, MCA), a violaƟ on of the City Code of Ethics, in addiƟ on to terminaƟ on or removal from offi ce, could be prosecuted as a misdemeanor under the Bozeman Municipal Code’s general penalty provision (Chapter 1.16). 16. Are There Additional Resources on Ethics in Local Government?The following is a parƟ al list of addiƟ onal resources for informaƟ on on ethics in local government: City of Bozeman Board of Ethicsc/o Offi ce of the City Clerk121 North RouseP.O. Box 1230Bozeman, MT 59771-1230Tel: (406) 582-2320agenda@bozeman.net www.bozeman.net/bozeman/Residents/EthicsEthics HandbookTable of ContentsPreface .................................................................................ii1. What Are Ethics and Why Are They Important for Local Governments? ......22. Why Have an Ethics Handbook? ..................................................23. Who Is This Handbook WriƩ en For? ..............................................34. What Is the Board of Ethics and What Are Its ResponsibiliƟ es? ...............35. What Are Standards of Conduct? .................................................46. Can Employees or Offi cials Use City Resources for Personal Gain? ............57. What If an Employee or Offi cial Has a Conﬂ ict of Interest? .....................58. Can Employees or Offi cials Disclose Conﬁ denƟ al InformaƟ on? ................69. Can Employees or Offi cials Accept GiŌ s? .........................................610. Do Employees or Offi cials Have to File Financial Disclosure Statements? ....711. What Are the Post-Employment Policies for Employees or Offi cials? ........812. Are There RestricƟ ons on Ex Parte CommunicaƟ ons? .........................913. What Is the City Whistle Blower Policy? ........................................914. What State Laws Apply to Ethics in Local Government? ..................... 1115. What Are the PenalƟ es for ViolaƟ ng the Code of Ethics? ................... 1216. Are There AddiƟ onal Resources on Ethics in Local Government? .......... 1217. What Is the Process to Seek Advice About the City Code of Ethics? ........ 1318. How Can an Ethics Complaint Be Filed? ...................................... 14139 2City of Bozeman1. What Are Ethics and Why Are They Important for Local Governments?Ethics are commonly deﬁ ned as the rules of conduct that govern how a society diff erenƟ ates between good and bad, right and wrong. In pracƟ ce, ethics guide individuals in idenƟ fying the correct course of acƟ on in how decisions are made. In local government, the role of ethics is signiﬁ cant in maintaining public trust, fairness, and the appearance of fairness in all government acƟ on. Many local governments, including Bozeman, have created laws that outline a Code of Ethics that specify the conduct of all government acƟ ons, be it employees, elected offi cials, or appointed offi cials, to ensure that all dealings are conducted fairly and in an unbiased manner in both appearance and fact. In general, a Code of Ethics, as is the case for Bozeman, is designed to guarantee that procedural requirements are followed so that all government acƟ ons are not only fair, but also appear to be fair. The goal of any ethics-related statute and program is to preserve the public’s conﬁ dence and trust in government.2. Why Have an Ethics Handbook?In addiƟ on to the City Code of Ethics all city employees and offi cials are subject to the state of Montana Code of Ethics (2-2-101, Montana Code Annotated, MCA). Among the provisions outlined in the State Code of Ethics, a local government may “establish a three-member panel to review complaints alleging violaƟ ons” (2-2-144(5)(a), MCA). More speciﬁ c informaƟ on about the State Code of Ethics is detailed in SecƟ on 14 of this handbook.This handbook was created as a result of the Bozeman City Charter (eff ecƟ ve Jan. 1, 2008), and through codiﬁ caƟ on of the City Code of Ethics in Chapter 2.01 of the Bozeman Municipal Code. The Charter states that the City shall implement an ordinance addressing maƩ ers such as conﬂ ict of interest, accepƟ ng giŌ s, use of conﬁ denƟ al informaƟ on, and public disclosure. The Charter also requires the City to establish a Board of Ethics. Among the many responsibiliƟ es of the board are to create an “ethics handbook for the use of all public servants and the public” (2.01.140.A.13).11Ethics Handbook14. What State Laws Apply to Ethicsin Local Government?Montana state law on ethics applies to local government offi cials and employees. As such, employees and offi cials must understand there are provisions of state law in addiƟ on to the City Code of Ethics that apply to employees and offi cials. State law and the City Code of Ethics prohibit conﬂ ict between public duty and private interest as required by the ConsƟ tuƟ on of Montana (2-2-101, MCA). Another important provision of state law applicable to employees and offi cials is the requirement that they may not receive a salary from two separate public employment posiƟ ons that overlap for the hours being compensated. Employees and offi cials should familiarize themselves with other speciﬁ c provisions and excepƟ ons of state law that are detailed in the Montana Code Annotated (2-2-104 (3)(a), MCA). Employees and offi cials must also disclose in wriƟ ng the nature of any private interest that creates a conﬂ ict to the Commissioner of PoliƟ cal PracƟ ces at the address below (2-2-131, MCA):Montana Commissioner of PoliƟ cal PracƟ ces1205 8th AveP.O. Box 202401Helena, MT 59620-2401According to state law, a former public employee (as deﬁ ned by 2-2-102(7), MCA) may not within six months following the terminaƟ on of employment, contract with or be employed by an employer who contracts with the state or any of its subdivisions involving maƩ ers with which the former employee was directly involved during employment. This provision does not absolve an employee from complying with the post-employment acƟ viƟ es of the City Code of Ethics (see SecƟ on 11 of this handbook). The prohibiƟ on on post-employment acƟ vity in the City Code of Ethics lasts for twelve months unless disclosed. Employees and offi cials are encouraged to familiarize themselves with 2-2-201, MCA.City employees and offi cials are also subject to state law regarding nepoƟ sm. NepoƟ sm is deﬁ ned as the “bestowal of poliƟ cal patronage by reason of relaƟ onship rather than of merit” (2-2-301, MCA). It is unlawful to appoint a person who is related by blood (consanguinity) or marriage (affi nity) to any posiƟ on of “trust or emolument” (meaning any offi ce or employment that 140 10City of Bozemanhave the opportunity to acƟ vely report violaƟ ons. Without such opportunity, the very premise upon which the City Code of Ethics is built will not be fulﬁ lled. The City refers to “whistle blowing” as the “reporƟ ng of improper governmental conduct or acƟ on.” Every offi cial or employee must refrain from improper governmental acƟ on. An improper governmental acƟ on includes any acƟ on taken by an offi cial or employee during the performance of their duƟ es that violates the standards of conduct in the City Code of Ethics or Montana state law, or is intended to harass, inƟ midate, or retaliate against any other employee, offi cial, or any member of the public. This principle is criƟ cal: No offi cial or employee shall retaliate against any employee, offi cial or member of the public regarding an allegaƟ on of improper governmental acƟ on (2.01.040.I).An improper governmental acƟ on also includes any acƟ on that violates a ﬁ duciary duty to the City or its ciƟ zens or creates a danger to the public health or safety (2.01.020.I). To ensure the public is aff orded the ability to “whistle blow,” the Code of Ethics speciﬁ cally states that every city employee, offi cial or member of the public has the right to report in good faith, informaƟ on concerning improper governmental acƟ on (2.01.120.B). The City Code of Ethics further states that “each member of the public shall be treated courteously imparƟ ally and fairly. All employees and offi cials shall in the exercise of their offi cial duƟ es refrain from taking any acƟ on, making of any statement, or authoring any document that is intended to harass, inƟ midate, or retaliate against any member of the public” (2.01.060).It is important to note that “improper governmental acƟ on” excludes personnel acƟ ons, including but not limited to: employee grievances, complaints, appointments, promoƟ ons, transfers, assignments, reassignments, reinstatements, restoraƟ ons, reemployments, performance evaluaƟ ons, reducƟ ons in pay, dismissals, suspensions, demoƟ ons, reprimands, violaƟ ons of collecƟ ve bargaining or civil service laws, or alleged violaƟ ons of agreements with labor organizaƟ ons under collecƟ ve bargaining (2.01.020.I).Finally, a properly authorized city program or budgetary expenditure does not become an improper governmental acƟ on because a person disagrees with the city policy or decision. Members of the public who may want to discuss a potenƟ al whistle blowing acƟ on are encouraged to communicate with the City AƩ orney.3Ethics HandbookThe City Code of Ethics also affi rms the statement of core values of the city of Bozeman. This statement declares:“Integrity, leadership, service, and teamwork are the core values of our organizaƟ on and provide a framework for our employees, community volunteers, and ciƟ zens,” (ResoluƟ on No. 3832).3. Who Is This Handbook Written For?This handbook is wriƩ en for all persons interested in the operaƟ on of Bozeman city government including ciƟ zens, city employees and elected and appointed offi cials. This handbook addresses legal requirements and best pracƟ ces for the ethical behavior of city employees and offi cials as they undertake their public duƟ es. Employees are deﬁ ned as all individuals employed by the City and its agencies, but do not include independent contractors hired by the City, City Commissioners, or any municipal judge (2.01.020.F). Offi cials are all offi cers and members of the city’s agencies, whether elected or appointed, whether paid or unpaid, whether permanent, temporary, or alternate, and that are not employees (2.01.020.J). Agencies are deﬁ ned as boards, commiƩ ees, departments, and offi ces of the city, without excepƟ on (2.01.020.A). Offi cials and employees are considered to be public servants under the City Code of Ethics (2.01.020.L). The City Code of Ethics also speciﬁ cally states that this handbook is for use by the public (2.01.140.A.13) and that “every member of the public has the right to report improper government acƟ on” (2.01.120.B), and “any person” may ﬁ le a complaint with the Board of Ethics or may request an ethics opinion (2.01.150.A).4. What Is the Board of Ethics and What Are Its Responsibilities? The City Code of Ethics details the responsibiliƟ es of a three-member Board of Ethics (hereaŌ er called “The Board”). The Board is made up of individuals who are residents of the city but not “elected offi cials of the city, full-Ɵ me appointed city offi cials whether exempt or nonexempt, or city employees” (2.01.130). Board members are appointed by the City Commission to staggered terms and do not receive compensaƟ on. The responsibiliƟ es of the Board are to:141 4City of Bozeman• Evaluate all aspects of the City Code of Ethics to ensure the public and all public servants have a reasonable opportunity and are encouraged to parƟ cipate; • Develop a plan to educate public servants about their rights, duƟ es and responsibiliƟ es;• Submit an annual report of summary decisions, opinions and recommended acƟ ons regarding ethical pracƟ ces or policies;• Arrange for an annual workshop or training program for all board members; and• Conduct hearings as needed (2.01.140.A.1-14).The Board does not have authority to reverse or modify a prior acƟ on of the Mayor, governing body or an offi cer or employee of the City but may refer a maƩ er to the City AƩ orney for review and consideraƟ on for appropriate acƟ on (2.01.150). The Board was created to ensure the public and all public servants have a reasonable opportunity and are encouraged to parƟ cipate in any process for regularly evaluaƟ ng the City Code of Ethics. 5. What Are Standards of Conduct?Standards of conduct refer to the basic legal rules that apply to all employees and offi cials. These rules are designed to provide pracƟ cal day-to-day guidance for employees and offi cials as they fulﬁ ll their public duƟ es. This secƟ on of the City Code of Ethics states that offi cials or employees must: • Act morally and honestly in discharging their responsibiliƟ es;• Discharge their duƟ es imparƟ ally and fairly;• Devote necessary Ɵ me and eff ort; and• Not use their posiƟ on to secure any ﬁ nancial interest or personal interest, improperly inﬂ uence any other offi cial or employee in the performance of offi cial duƟ es, or act in a private capacity on maƩ ers they are directly responsible for (2.01.140.A-G). Standards of conduct are necessarily broad as they are general principles for behavior. ApplicaƟ on of these principles to every day circumstances is the duty of each employee or offi cial. 9Ethics HandbookIn addiƟ on, city employees and offi cials may not use their former offi cial city Ɵ tle following terminaƟ on of employment with the City unless the former public servant indicates the employment with the City was former to the current employment (2.01.110.A.3). 12. Are There Restrictions on Ex Parte Communications?Perhaps no other acƟ vity has the potenƟ al to negaƟ vely impact the public’s trust in city government than favoriƟ sm and bias in decision-making. When an offi cial engages in discussions with individuals outside of the offi cial public process, the public can view decisions involving those individuals with distrust. Ex parte communicaƟ ons is deﬁ ned as a private, one-sided communicaƟ on between a decision-maker and a party or person with an issue before that decision-maker. While the City Code of Ethics does not speciﬁ cally address ex parte communicaƟ ons for employees and offi cials, these individuals should be prudent regarding potenƟ al communicaƟ ons, parƟ cularly for those individuals acƟ ng in a quasi-judicial capacity. The ﬁ rst principle regarding ex parte communicaƟ on is to avoid it. If, however, an individual feels that he/she is involved in an ex parte communicaƟ on that may negaƟ vely impact his/her ability to perform offi cial duƟ es, the individual should disclose the communicaƟ on on the record, recuse him/herself from parƟ cipaƟ ng in the discussion and acƟ on on the subject, and step away from his/her offi cial seat on the board or commiƩ ee. If the communicaƟ on does not aff ect an offi cial’s ability to imparƟ ally perform his/her duƟ es, the offi cial should sƟ ll disclose the existence of the ex parte communicaƟ on and state on the record that his/her decision will be based solely on the public record and not on the substance of the ex parte communicaƟ on. The City AƩ orney views ex parte communicaƟ on as a criƟ cal issue demanding prompt response. As such, employees and offi cials are encouraged to contact and seek the advice of the City AƩ orney when such communicaƟ ons occur. 13. What Is the City Whistle Blower Policy?Transparent and fair pracƟ ces are at the heart of the public’s trust in city government. When offi cials and employees violate this trust, the public should 142 8City of BozemanIn addition, the Finance Department creates a list of vendors and service providers for each department who contract for services or materials greater than $2,500 each month or more than $10,000 per year. Each member of a department must disclose if they have an economic relationship with that vendor (2.01.100.D). The list of vendors is maintained by the Finance Department.11. What Are the Post-Employment Policies for Employees or Ofﬁ cials?Generally, the public views with distrust actions taken by individuals who once worked for or represented the City when knowledge gained in service to the city directly benefits the former employee or official. However, it is also understandable that some transactions, when disclosure is properly made, should not be prohibited because they are necessary to an individual’s economic efforts. To balance these considerations, city employees and officials are subject to specific rules that apply to post-employment activities. As a rule, city employees and offi cials may not, for 12 months following the date on which they cease to be a public servant, make any formal or informal appearance before or negoƟ ate with any decision maker, or for compensaƟ on act on behalf of any party on any maƩ er that was under the public servant’s direct responsibility, without ﬁ ling a public noƟ ce of their desire to negoƟ ate with or appear informally or formally before the decision maker (2.01.110.A.1).In addiƟ on, during the ﬁ rst 12 months aŌ er separaƟ on from the City, no former offi cial or employee may, without ﬁ ling a proper disclosure, act on behalf of any party other than the City in connecƟ on with any maƩ er in which that offi cial or employee parƟ cipated personally and substanƟ ally in their capacity as an offi cial or employee (2.01.110.A.2).The disclosure shall be made with the City Clerk and with the City AƩ orney (2.01.110-111). In some instances, the public may not understand or be privy to these disclosures prior to a lawful acƟ on taking place. As a result, employees and offi cials who leave the City should be mindful of the long-term implicaƟ ons for the public trust when considering engaging in an acƟ vity subject to the City Code of Ethics. 5Ethics Handbook6. Can Employees or Ofﬁ cials Use City Resources for Personal Gain?City offi cials and employees are entrusted with public resources including equipment and access to informaƟ on. The temptaƟ on to use resources and knowledge for personal gain can be signiﬁ cant, especially when equipment, such as a vehicle, is entrusted to an employee. The City Code of Ethics clearly states employees and offi cials are not permiƩ ed the use of city-owned vehicles, equipment, material, or the use of other city resources for personal use. In addiƟ on, no city automobile shall be used by a city employee or offi cial going to or from home, except when such use is for the beneﬁ t of the city, as in the case of an employee on call outside of the employee’s working hours (2.01.050). The City also has a speciﬁ c vehicle use policy (See AdministraƟ ve Order 2007-03). 7. What If an Employee or Ofﬁ cial Has a Conﬂ ict of Interest?Many of the rules established in the City Code of Ethics provide general principles required of an employee or offi cial while others provide speciﬁ c direcƟ on. The conﬂ ict of interest secƟ on in the City Code of Ethics provides both. Speciﬁ c rules required of an employee or offi cial when confronted with a potenƟ al conﬂ ict, and general principles, which can provide guidance if a situaƟ on is not covered by a speciﬁ c rule. A conﬂ ict of interest can be either ﬁ nancial or personal. In general, no city offi cial or employee shall have any ﬁ nancial or personal interest in any transacƟ on with the City without full public disclosure (further detailed in SecƟ on 11 of this handbook) (2.01.070).A ﬁ nancial interest is deﬁ ned as any interest (such as ownership, a contractual relaƟ onship, or a business relaƟ onship), which will result in a monetary or other material beneﬁ t that has a value of more than ﬁ Ō een dollars, other than salary or compensaƟ on, for services to the city (2.01.020.G). A personal interest is any interest that would aff ect the acƟ on of the individual other than a ﬁ nancial interest (2.01.020.K).It is beƩ er to avoid conﬂ icts of interest than determine how to manage one if it arises (2.01.070). If a city offi cial or employee has a conﬂ ict of interest, the individual should ﬁ rst review the speciﬁ c language in the Code. If the Code does not provide speciﬁ c direcƟ on, the employee or offi cial is encouraged to contact the City AƩ orney (see SecƟ on 17 of this handbook). 143 6City of Bozeman8. Can Employees or Ofﬁ cials Disclose Conﬁ dential Information?ArƟ cle II, SecƟ on 9 of the Montana ConsƟ tuƟ on provides an express statement regarding privacy: “The right of individual privacy is essenƟ al to the well-being of a free society and shall not be infringed without the showing of a compelling state interest.” In some circumstances, despite strong open government laws in Montana, the protecƟ on of private or conﬁ denƟ al informaƟ on is a public duty. To achieve this, city offi cials or employees are not, without legal authority, permiƩ ed to disclose conﬁ denƟ al informaƟ on concerning personnel, property, government, or aff airs of the City (2.01.080.A). Conﬁ denƟ al informaƟ on is deﬁ ned as any informaƟ on which is not available to the general public and which is obtained only by reason of an individual’s posiƟ on with the City (2.01.020.D).City offi cials or employees are not permiƩ ed to use conﬁ denƟ al informaƟ on to advance their own ﬁ nancial or personal interest or the ﬁ nancial or personal interests of any other person (2.01.080).City employees and offi cials should use their best judgment to ﬁ rst determine if informaƟ on is conﬁ denƟ al in nature. If so, employees and offi cials are under obligaƟ on to protect those conﬁ dences. If an employee or offi cial is in doubt as to whether informaƟ on is conﬁ denƟ al and must be protected, the employee or offi cial must contact the City AƩ orney. 9. Can Employees or Ofﬁ cials Accept Gifts?GiŌ s are undeniably a major topic of discussion for employees and offi cials. QuesƟ ons invariably arise as to whether it is a violaƟ on of the City Code of Ethics to accept a Ɵ n of holiday cookies or even a free cup of coff ee. City offi cials or employees are not permiƩ ed to accept a giŌ , gratuity, or favor from any person or enƟ ty, except as authorized by state law (2.01.090). According to Montana state law, it is unlawful for an offi cial or employee to accept a giŌ of substanƟ al value (deﬁ ned as $50 or more), or of a substanƟ al economic beneﬁ t that would improperly inﬂ uence a reasonable person to depart from their duƟ es, or is primarily viewed as a reward (2-2-104(1)(b), MCA). The quesƟ on is not whether a giŌ off ered by a ciƟ zen is done with the intent to unduly inﬂ uence an offi cial or employee. The quesƟ on an employee or offi cial 7Ethics Handbookmust focus on is whether a reasonable member of the public would view the giŌ as improperly inﬂ uencing a reasonable person to depart from their duƟ es or is designed to reward that employee or offi cial for offi cial acƟ on. GiŌ s that are exempt from state law include any giŌ that is returned or given to charity and any of the following: • Food and beverages consumed on the occasion when parƟ cipaƟ on in a charitable, civic, or community event bears a relaƟ onship to the public offi cer’s or public employee’s offi ce or employment or when the offi cer or employee is in aƩ endance in an offi cial capacity;• EducaƟ onal materials directly related to offi cial governmental duƟ es;• Public award recognizing public service; andEducaƟ onal acƟ vity that does not appear to place the recipient under obligaƟ on, clearly serves the public good, and is not lavish or extravagant (2-3-102(3)(b), MCA).City offi cials or employees are not permiƩ ed to accept loans at a substanƟ ally lower rate or compensaƟ on at a substanƟ ally higher rate (2-2-104(2), MCA). The City AƩ orney rouƟ nely advises employees and offi cials on a case-by-case basis regarding whether acceptance of a giŌ is lawful (For more informaƟ on, see SecƟ on 17 of this handbook). 10. Do Employees or Ofﬁ cials Have to File Financial Disclosure Statements?SecƟ on 7.01(a) of the City Charter requires the “reasonable public disclosure of ﬁ nances by offi cials with major decision-making authority over monetary expenditures and contractual and regulatory maƩ ers…” This mandate is fulﬁ lled by 2.01.100 of the Code of Ethics. The purpose behind these disclosure requirements is to ensure a greater level of accountability and transparency in the management of public resources. The annual ﬁ ling of a Financial Disclosure Statement is required for offi cials and employees who are determined by the City Manager and City Commission to be “major ﬁ nancial decision makers.” A list is created annually by the City Finance Director and the Human Resource Director and individuals subject to the disclosure requirements are noƟ ﬁ ed annually (2.01.100.A-C). The City Clerk stores all submiƩ ed disclosures. 144